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MHGVY or MDLZ: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Marine Harvest ASA (MHGVY - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Marine Harvest ASA and Mondelez are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MHGVY currently has a forward P/E ratio of 11.47, while MDLZ has a forward P/E of 21.38. We also note that MHGVY has a PEG ratio of 1.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MDLZ currently has a PEG ratio of 3.

Another notable valuation metric for MHGVY is its P/B ratio of 2.23. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MDLZ has a P/B of 3.44.

These metrics, and several others, help MHGVY earn a Value grade of B, while MDLZ has been given a Value grade of C.

Both MHGVY and MDLZ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MHGVY is the superior value option right now.


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Mondelez International, Inc. (MDLZ) - free report >>

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